The Accrual Basis of Accounting Is Often Contrasted with the Cash

question 105

Multiple Choice

The accrual basis of accounting is often contrasted with the cash basis of accounting.Which of the following is true of the cash basis of accounting?

• A)The cash basis is not subject to manipulation
• B)Most larger companies use the cash basis of accounting
• C)The cash basis of accounting provides a strong basis to determine the total assets of the company
• D)The cash basis provides an inferior picture of operating performance
• E)The cash basis provides an superior picture of operating performance

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